Asymmetric taxes

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Asymmetric taxes

When participants in a transaction have different net tax rates.

Asymmetric Taxes

A situation in which two parties to a transaction pay different tax rates. This may affect what one party or the other desires about the timing, price, or other factors regarding the transaction.
References in periodicals archive ?
"Asymmetric Tax Competition." Journal of Urban Economics, 30(2), 1991, 167-81.
"Tax Rate Harmonization, Renegotiation, and Asymmetric Tax Competition for Profits with Repeated Interaction." Journal of Public Economic Theory, 16(5), 2014, 796-823.
A (state-level) segmentation of this market emerges from asymmetric tax exemption.
This asymmetric tax exemption creates an exogenous friction that segments the municipal bond market, thus offering a unique venue to evaluate the effects of market segmentation on issuers and investors.
"Estimating corporate marginal tax rates with asymmetric tax treatment of gains and losses." The Journal of the American Taxation Association: Spring, 51-67.
The experimental design compares economically equivalent systems of asymmetric tax deductions (some subjects receive tax deductions and others do not), asymmetric direct subsidies (some subjects receive direct subsidies and others do not), and an equitable system (no deductions or subsidies).
This result may be jeopardized, however, if the shares are "tainted" either because they were acquired from abroad, held by a nonresident or by the Treuhandanstalt (Reunification Privatization Agency) at any time within the last 10 years, or acquired from German resident individuals if the capital gain has not been subject to tax (because of the asymmetric tax treatment that could result from a combination of capital gains not being taxed in Germany and a tax-free step-up) .
Garven, 1992, "An Exposition of the Implications of Limited-Liability and Asymmetric Taxes for Property-Liability Insurance", Journal of Risk and Insurance, 59:34-56
The tax system offers insurance for taking risk because taxes depend on outcomes; however, asymmetric taxes on different outcomes, such as progressive rates, may discourage risk taking.
Garven (1992) examines the differences in risk incentives for mutual and stock insurers caused by the existence of asymmetric taxes combined with limited liability.
This provides a benchmark for the effects of agency costs and asymmetric taxes. We then compare the projects' maximized value under each organizational form, for various values of the projects' joint return parameters.
This article elaborates upon the intuition underlying Doherty and Garven's (1986) option pricing model and extends its basic results to a further consideration of the implications of limited liability and asymmetric taxes for pricing and risk incentives in property-liability insurance.

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